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Which of the Following Can Lead to an Inefficient Outcome

question 35

Multiple Choice

Which of the following can lead to an inefficient outcome? I.Price regulations
II.Increasing marginal cost
III.Monopoly


Definitions:

Consumption

The use of goods and services by households. It is a primary component of an economy's demand side.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting its sensitivity.

Tax Revenue

The income that is gained by governments through taxation.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in its price.

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